I belong to a fabulous athletic club. Great facility. All the latest fitness equipment. Plenty of tennis courts. Great service. Everything I need.
I’m guessing, but I think the total membership is in the thousands.
What would happen if all the members decided to show up at the same time, or even on the same day? Can you say “overload?” Clearly the experience would be a lot less desirable.
Athletic clubs operate on the Pareto Principle. 20% of the members are active and they account for 80% of club usage. Fortunately for us loyal users, 80% of the members pay their dues every month but rarely use the facilities.
In business I often get these questions: what should I do with the 80% of my customer base who account for only 20% of my results? Is every customer created equal? Where should I spend my time and resources?
How much effort should you put toward your passive or inactive members or customers? In my experience, focusing here is most often a losing proposition. Most things in life aren’t distributed evenly. In any endeavor, some things contribute more to your success than others.
About one in five customers will make a serious difference in your business. It’s our job as owners and managers to know who they are. Concentrating on those critical few is the best way to drive results.
THE NEW AMERICAN MARKETPLACE website is all about getting more from less. You are probably already doing business with those who are your best source of higher revenues and profits.
THE NEW AMERICAN MARKETPLACE website will show you how you can you expand your relationship with existing customers, the fastest way to increase business.
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I agree with this article! In the past I have been very diligent in calling perspective clients on regular intervals, but the success rate was always very low. I have people I call every couple months for years & never get any business, although they all claim to be Happy I’m calling. My new rule is if it nothing happens after the first couple of calls I turn off the reminder!